This module allows you to analyze existing cross correlation between HitBTC DigitalCash USD and HitBTC PeerCoin USD. You can compare the effects of market volatilities on HitBTC DigitalCash and HitBTC PeerCoin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HitBTC DigitalCash with a short position of HitBTC PeerCoin. See also your portfolio center. Please also check ongoing floating volatility patterns of HitBTC DigitalCash and HitBTC PeerCoin.

HitBTC

DigitalCash on HitBTC in USD

417.55

12.31

3.04%

Market Cap: 797.4 M

HitBTC

PeerCoin on HitBTC in USD

1.88

0.05

2.73%

Market Cap: 23.8 K

Performance (%)

Timeline

Pair Volatility

Assuming 30 trading days horizon, HitBTC DigitalCash USD is expected to generate 1.07 times more return on investment than HitBTC PeerCoin. However, HitBTC DigitalCash is 1.07 times more volatile than HitBTC PeerCoin USD. It trades about -0.3 of its potential returns per unit of risk. HitBTC PeerCoin USD is currently generating about -0.51 per unit of risk. If you would invest 70,454 in HitBTC DigitalCash USD on February 17, 2018 and sell it today you would lose (28,699) from holding HitBTC DigitalCash USD or give up 40.73% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between HitBTC DigitalCash and HitBTC PeerCoin

0.99

Parameters

Diversification

No risk reduction

Overlapping area represents the amount of risk that can be diversified away by holding HitBTC DigitalCash USD and HitBTC PeerCoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC PeerCoin USD and HitBTC DigitalCash is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HitBTC DigitalCash USD are associated (or correlated) with HitBTC PeerCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC PeerCoin USD has no effect on the direction of HitBTC DigitalCash i.e. HitBTC DigitalCash and HitBTC PeerCoin go up and down completely randomly.